30 day Safe Harbor – What do you consider “As soon as practicable”?
Rev. Proc. 2016-47
Late IRA Rollovers
I’m seeing some requests that are really, really stretching things. Making a mistake in 2015 (advisor saying they mean to open a traditional IRA but opened a trust instead) and not noticing it until now is not believable to me. But as the custodian, should I care if I get the correct paperwork? Any opinions?
Permalink Submitted by Alan - IRA critic on Tue, 2018-11-27 17:55
The RP does not appear to require the IRA Custodian to investigate the reason claimed by the client. For example, if reason c) is being claimed (thought account was an IRA), client would have reported a rollover on their 2015 tax return and not reported taxable income from the 1099R, and the IRS could easily look at that return to determine if such rollover was reported. In fact, without a 5498 the IRS should have questioned any rollover reported long before now, and if they did, then client did not attempt to complete the rollover within 30 days. So I think you could leave this up to the IRS if the client presents a copy of the certification.